Financial Times FT.com

Investors move against mortgage securities bill

By Aline van Duyn and Saskia Scholtes in New York

Published: April 23 2009 22:35 | Last updated: April 23 2009 22:35

Bond investors are lobbying hard to change federal policies aimed at reducing foreclosures in the US, saying the measures discriminate against holders of top-rated securities backed by mortgages.

The investors are set to meet senators next week. The next step could be legal action against the US government if the law is passed, on the basis that it could violate the Fifth Amendment, which prohibits the taking of private property for public use without compensation.

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